CDL Hospitality Trusts - Sustainability Report 2022

Asset Management Acquisition Capital Recycling Capital and Risk Management 1 2 3 4 SUSTAINABILITY REPORT RESPONSIBLE INVESTMENT AND SUSTAINABLE VALUE At CDLHT we are driving the shift towards responsible investing by ensuring transparent, sustainable, and ethical investments. As our hotels operate across numerous geographies, we track, as far as possible, our environmental and social impacts, risks and opportunities across our business value chain and operations. We create sustainable value by incorporating our ESG material topics within our economic performance, investments decisions, and business efforts, and strategically adopting a holistic business approach that contributes to the betterment of the communities in which we have a presence. We aim to deploy our capital to positively impact society and the environment towards a sustainable future. Economic Performance As one of the leading hospitality trusts, ensuring economic growth is paramount to the longevity of our business. Our primary economic objectives are to maximise the rate of return of Stapled Security Holders and to make regular distributions. The financial summary of FY 2022’s operations, revenues and costs are highlighted on pages 155 to 275, in our annual report. Our management aims to achieve these economic objectives through the following means: Acquisition Growth Strategy • Pursue quality assets with growth potential • Pursue asset class diversification within the lodging space and promote income stability • Adopt a medium to long term perspective to ride through market cycles • Partner with or tap on potential pipeline from M&C / CDL Asset Management Strategy • Work closely with master lessees, hotel/property managers and/or operators to implement active revenue and cost management • Implement asset enhancement initiatives to optimise asset potential • Operate and invest in alignment with relevant ESG standards Capital Recycling Strategy • Evaluate divestment opportunities periodically to recycle capital for better returns, rebalance portfolio and/or unlock underlying asset values • Continually improve quality of portfolio Capital and Risk Management Strategy • Maintain a healthy balance sheet • Enhance financial flexibility by maintaining diversified sources of funding • Manage exposure arising from interest rates and foreign exchange through appropriate hedging strategies 1 2 3 4 104 SUSTAINABILITY REPORT ANNUAL REPORT 2022